Designers Go from Chic to Cheap

NEW YORK —Reaching out to the mass market is nothing new to the fashion industry. Just take a look at Pierre Cardin who designed haute couture gowns in the 1950s, then expanded to department stores. Ralph Lauren’s 13 different levels of brands accommodate a slew of customers. Karl Lagerfeld was able to flood H&M stores and sell a $5,000 Chanel garment with success.

“There are very few designers who are not interested in exploring mid- and lower-level markets,” said Marshal Cohen, chief industry analyst for The NDP Group. The ability to showcase talent by diversifying to all levels creates a whole new level of success as a designer.

Going mass often resurrects a brand. Take Mossimo, a high-end brand on the downward spiral until it partnered with Target in 2000, where Mossimo Giannulli increased growth thanks to in-house merchandising expertise and distribution capabilities. The venture catapulted Target’s thirst for partnering with designers. Isaac Mizrahi made his debut in 2003, followed by the GO International concept in early 2006.

The success of the Isaac Mizrahi for Target collection is clear, and by the looks of it, Mizrahi is not slowing down. In May, he unveiled the Isaac Mizrahi for Target wedding collection that includes modestly priced bridal gowns, bridesmaid dresses, cummerbunds and satin shoes. “My bridal gowns are all reinventions of the classics, providing an affordable alternative for women everywhere,” said Isaac Mizrahi in a public statement.

The fruition of the bridal apparel category promotes growth, something that weighs heavily in the low-end fashion retail business. Like maternity and plus-size, bridal has been picking up speed on the customer radar. “Isaac’s sportswear line is a favorite with guests and his wedding collection incorporates signature Isaac Mizrahi style and elegance at affordable prices,” said Target senior vp Trish Adams, in a press release.

The popularity of the designer is parallel to the growth of Isaac Mizrahi for Target, which awakened Isaac Mizrahi Couture with more vigor than before. “It’s trendy to scale down and at the same time to focus upward,” said Cohen. Designers, like most celebrities, seek publicity. So they take a brand and scale down. “These days, opening a low-end line is bigger news than releasing a new couture line,” added Cohen.

JCPenny has been working with a 25-year fashion veteran, Nicole Miller, since 2005. The launch of Nicole by Nicole Miller was positively received by consumers, which, in turn, lead to an intimates line. “Our mission is to continually enhance our merchandise assortment to ensure that it offers styles that inspire and reflect the lifestyles of its target customers,” said Kate Parkhouse, spokeswoman for JCPenney.

Although the Nicole Miller collection showed powerful results for JCPenney, it did not make the same waves as Target did through its partnerships. When Target spent its budget to penetrate into pop culture conversations, JCPenney focused on fitting the line with the brands already in store.

“Aligning ourselves with designers who bring their expertise and unique flair for design allows us to offer customers coveted designer brands at the best value while providing an opportunity for designers to expand and introduce their brands to the Middle American consumer,” said Parkhouse. JCPenney also believes that such partnerships develop exclusivity that bridges their relationship with the customers.

Most recently, Vera Wang’s entrance into Kohl’s confirmed that designers are on the prowl in the mass market. The styles of the SimplyVera by Vera Wang collection easily mirror the highly coveted pieces off the runway. However, customers have remarked that the price points were higher than expected. Kohl’s soon dropped the price of most items by 30%.

Retailers experiment with different price points to see how far they can push the envelope. In the case of SimplyVera, price shock may have come into play because of weak marketing and merchandising. Nonetheless, low-end retailers don’t need to replace low-end products when designers come in. Instead, they need to build growth from a higher price-point to capture a new consumer and retain those migrating to other venues, said Cohen. Revenue sales alone do not always judge success.

Designers will keep on trying to get in this game for three simple reasons: diversifying in the high-end and low-end market shows talent, creating a household name deems recognition and cha-ching! sounds pretty good.

“I am waiting for Dollar stores to have dollar T-shirts by designers,” joked Cohen. “And it will happen.